HST/GST guide for pet sitters in Canada

The threshold

CAD 30,000 in four consecutive quarters

CRA’s small-supplier rule says you must register for GST/HST once your total taxable revenue across all your self-employment activities exceeds CAD 30,000 over four consecutive calendar quarters. Below that threshold, registration is voluntary.

For most beginning Petme sitters, the threshold is comfortably above their first year of revenue. Many sitters cross it in year two or three; some never do. Once you cross, you have 29 days to register.

Voluntary registration before you hit the threshold is sometimes useful if your customers are businesses (so they can claim input tax credits). Most pet sitting customers are individual pet owners, so voluntary registration usually isn’t worth the paperwork.

Self-employment basics

Reporting pet sitting income

All pet sitting income is reported on your personal tax return as self-employment business income (T2125). You can deduct legitimate business expenses against that income: mileage to client homes, leashes, poop bags, paw balm, pet first-aid courses, a share of your phone bill, and so on. Keep receipts.

A small percentage of Petme sitters incorporate or register as a sole proprietorship. Most don’t need to. A Canadian accountant can advise on whether incorporation makes sense at your revenue level.

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